Silver Demand High – Delivery Delays and Premiums Surge

Silver Demand High – Delivery Delays and Premiums Surge

- Silver imports into U.S. surge 33%
- Silver Eagle demand very robust
- Silver Eagles and Maples see 25% surge in premiums and shortages
- Silver price falls over 3.8% on same day as U.S. Mint runs out of silver eagles
- Total ETF Silver holdings remain robust – over 500 million ounces
- Increase in demand seems to becoming from large entities buying bars
- Silver is great value sub $20 per ounce

Silver in USD – YTD 2015

Demand for silver has been surging this year as seen in U.S. silver imports, while silver eagles coin sales and silver ETF holdings remain robust. Despite this, silver has again under performed other assets and has seen price falls again this year to multi-year lows at $15 per ounce.

Demand for Silver Eagles spiked in the first week of this month leading the U.S. Mint to run out of its entire August inventory of coins. This coincided with a counter-intuitive 3.8% plunge in price last Monday.

Whoever these large buyers of physical silver may be it seems likely that they are well connected and well informed. It is speculated that JP Morgan may be among them or at least is acting on behalf of their clients.

ENDS

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